Sensient Technologies Reports Strong Color Group Results for the First Quarter
The Color Group reported record quarterly revenue of $108.0 million, an increase of 24.0% over last year's first quarter revenue of $87.1 million. Operating income for the quarter increased 31.9% to $18.1 million compared to $13.7 million in the first quarter of 2009.
20 Apr 2010 --- Sensient Technologies Corporation reported that diluted earnings per share for the three months ended March 31, 2010, were 48 cents, a record level for the first quarter and an increase of 6.7% in comparison to prior year results. Diluted earnings per share for the prior year's comparable period were 45 cents. Consolidated revenue for the first quarter of 2010 rose 11.0% to $314.1 million compared to $282.8 million in the first quarter of 2009. Favorable foreign currency translation increased consolidated revenue by approximately 5%.
Cash provided by operating activities in the first quarter rose 33.7% to $23.4 million, compared to $17.5 million in the prior year's comparable period. Total debt at March 31, 2010, was $415.2 million, a reduction of $12.8 million in the quarter and $53.3 million in the last twelve months.
"This quarter's excellent results show solid growth across many of our markets," said Kenneth P. Manning, Chairman and CEO of Sensient Technologies Corporation. "We continue to benefit from the investments we have made in the business and I am very optimistic about the Company's future."
BUSINESS REVIEW
The Color Group reported record quarterly revenue of $108.0 million, an increase of 24.0% over last year's first quarter revenue of $87.1 million. Operating income for the quarter increased 31.9% to $18.1 million compared to $13.7 million in the first quarter of 2009. Favorable foreign currency translation increased revenue and operating income for the Color Group by approximately 5% and 6%, respectively. Revenue grew across all product lines. Sales of food and beverage colors were up strongly in the quarter as a result of new wins and improved demand for existing products. Sales of non-food colors also recorded solid gains in the quarter. Operating profit for the Group was higher as a result of the strong sales growth. Group operating margins improved 100 basis points in the quarter to 16.8%.
The Flavors & Fragrances Group reported revenue for the first quarter of 2010 of $190.7 million, an increase of 3.3% compared to first quarter 2009 revenue of $184.5 million. Revenue and operating profit, as reported, were up in the traditional flavor product lines, but this growth was offset by lower revenue and profits from the dehydrated flavors product lines. Revenue and profits from dehydrated flavors were down as a result of price adjustments in advance of lower raw material costs. The impact of the new reduced raw material costs for these product lines is expected to benefit results toward the end of the second quarter of 2010. Group operating profit was $27.2 million, compared to $30.0 million in the comparable period in 2009. Favorable foreign currency translation increased Flavors & Fragrances Group revenue and operating income by approximately 5% and 4%, respectively.
